The South Korean won traded around 1,344 per dollar, softening after recently nearing its strongest level since October 2024, as elevated oil prices and uncertainty over the US Federal Reserve’s policy outlook pressured the currency. The latest Fed meeting minutes underscored concerns about stubborn inflation, and Governor Christopher Waller indicated that additional policy tightening may be necessary to contain price pressures. The prospect of higher US interest rates is expected to support the dollar and cap potential gains in the won.
At the same time, oil prices remained high amid renewed tensions involving Iran, with Brent crude settling at $104.28 per barrel and WTI at $91.49. These levels have intensified worries about imported inflation and rising energy costs for South Korea, a major energy importer. However, remarks by President Donald Trump that the United States would not launch an attack on Iran before the midterm elections helped temper immediate fears of further escalation.
